UK and International Tax news
Extension To Deadline For Reporting CGT on Property Disposals
Tuesday 2nd November 2021
The Chancellor announced in the Autumn Budget an extension to the deadline for the reporting and payment of CGT in respect of disposals of UK residential property.
UK residents who dispose of an interest in UK residential property that results in CGT to pay are required to deliver a CGT return to HMRC and make a payment on account of CGT within 30 days of the completion of the disposal.
Non-UK residents are required to deliver similar returns in respect of any direct or indirect disposal of UK land, irrespective of whether tax is due or the type of property, and make payments on account of CGT (where due).
In May 2021, the Office of Tax Simplification made recommendations on CGT including that the government should consider extending the 30-day deadline to 60 days.
Legislation will be introduced in the 2021/22 Finance Bill to extend the return delivery and payment date to 60 days following completion of the relevant disposal, for both UK and non UK residents.
For UK residents, provision will also clarify that where a gain arises in relation to a mixed-use property, only the portion of the gain that represents the residential property gain is to be reported and paid.
HMRC has confirmed that it will need to make changes to IT systems to support delivery of this measure and there will be a resource impact to support customers through transition. These changes are expected to cost in the region of £370k plus any associated resource implications.
The extended deadline applies to completions on or after 27 October 2021.